As per scheme of amalgamation, five companies amalgamated with assessee-company.  Amalgamation was recorded in books of account by assessee in accordance with Purchase method of accounting. Accordingly, difference between fair value of assets acquired and liabilities taken over, was recorded as Capital reserve in audited financial statements by assessee.  Assessing Office held that scheme of amalgamation was conceived and implemented by assessee with intent of evading payment of tax on book profit and assessee had, under garb of amalgamation, deliberately adopted Purchase method in order to artificially jack up value of assets/investments with intent of undermining its book profit for purpose of section 115JB.  He accordingly made upward adjustment to book profits in terms of clause (j) of Explanation 1 to section 115JB holding that amount transferred to capital reserve actually qualified as revaluation reserve. Tribunal held that since revenue had not brought anything tangible on record to prove surruptious nature of assessee to treat scheme of amalgamation as sham and moreover motive of tax evasion or scheme being a colourable device had not been proven by revenue, allegation of revenue regarding shame transaction could not be sustained.  Accordingly upward adjustment made in book profits was to be set aside. Tribunal also held that Loss incurred on account of redemption of mutual fund could not be added in business profit. (AY. 2015-16)